It is spring, a season when all creation comes to life. The energy of life that waited throughout the winter is blossoming. It endured the cold weather and is now stirring to life. That's why it's called a 'new spring'. Still winter, active summer, peaceful fall – we don't use 'new' for other seasons. Are we responding to the freshness of the spring? Are we creating something new in our habits of the heart and the muscles in our body? If our hearts are closed and our body stiff, the spring in our life has passed.

 Life changes every moment. Change is the way of life and no change is death. If change is fast, you grow; and if you fall behind, you decline. If you adapt, you will be chosen; if you reject, you will be excluded. If it is voluntary, it is fun; if it is forced, it is a struggle. If you change together, it is beautiful; if you change at an offbeat, it is ugly. Like the flowing river that flourishes, change protects and awakens human nature. Change is a condition to be alive and a reason to be alive.

 A company is also a living organism. Change determines life and death, ups and downs of a company. Recent internal and external environment have become rough and complex that if a company is idle or ignorant, it will not survive. Losers fall in misery, while the winner takes it all. A company's performance is the result of change – no excuse or tricks work. If the current performance is bad, it means that there was some wrong change in the past. Are you changing now for the future? The key is not performance; it is change.

 There were several moments of major shifts in the history of Korean companies – post-liberation political situation, the oil crisis, the Asian financial crisis, and today. Only a few companies overcame the turbulent times, and most disappeared. Samsung and Amorepacific established their business foundation during the chaos of the Korean War. They succeeded to make bold changes in the 1990s, which led to continued long-term growth. They are preparing for another major change in face of current challenges internally and externally. Both companies will have to press on harder in order to maintain the bright light of past successes.

 Early 1993, a whirlwind of change hit Samsung. It was right after Chairman Lee Kunhee saw a display of Samsung products at a corner under dust at a store overseas. Lee said he couldn't sleep and broke out in cold sweats thinking that the company might go under. In February that year, Chairman Lee opened an exhibit in LA of advanced products and had his company presidents observe. He wanted them to see for themselves, touch and try out the products to break down any stereotypes.

 One day, Chairman Lee made an international call to the head of Finance at the Secretary Office. He made other employees listen to the call by broadcasting the call through a ceiling speaker. He talked about crisis awareness, quality management, and internationalization for more than 30 minutes. He expressed irritation that the head of Finance did not understand. The Finance Team was the core department in what was known as the 'Samsung of management'. Chairman Lee made head of Finance, who he expected to resist change, his first target.

 Chairman Lee must have thought that the change was not enough, because he gathered the executives of Samsung affiliates and employees of the Secretary Office to cities overseas. 1,800 executives took part in a 350-hour marathon lecture course in 9 cities for 6 months. The program included accommodations at five-star hotels, lectures and discussions all night, and local cultural site visits. The peak of the program was the declaration of the 'New Management Initiative' during their stay in Frankfurt on June 7. The Secretary Office and each affiliate had to lay out a 'new management implementation plan'. Chairman Lee's encouragement, leading the new management organization, and proposals from the frontlines accelerated the speed of change. The group carried out measures including the 7-4 working hours (change in working hours), discarding defective products, changing recruitment, evaluation and reward systems, and implementing the one-page report initiative.

 I was working in the Finance Team of the Secretary Office at that time. I heard the phone call between Chairman Lee and the head of the team. I listened to Chairman Lee's lectures in London, and I tried assembling parts at a refrigerator production line. I was tired during the all-night lectures and physical labor was hard and boring. I didn't quite grasp the idea of crisis awareness, quality, design, and internationalization. But Chairman Lee desperately felt the necessity of change. To be honest, most Samsung members, including myself, did not really understand. Looking back, I feel ashamed I couldn't immerse in the change, being there right in the moment of history.

 The New Management Initiative is a story of a successful change. Samsung was able to overcome the Asian financial crisis thanks to pursuing New Management already. Samsung Electronics leveraged the digital revolution to fight off Sony and rose to the level of competing with Apple and Intel. Now, Samsung faces the whirlwind of the 4th Industrial Revolution and social democratization. It will only be able to protect its leadership position if it pursues a big enough change like the New Management. It is difficult enough to rise to the top; it is even more difficult to stay at the top.

 Amorepacific also went through a big change at a similar time. A symbolic event was when the members of the labor union occupied the headquarters in May 1991. The experience left a big wound, with hundreds of people detained by public authority. Amorepacific's leadership position in the domestic market of its main business was threatened and non-relevant businesses became a burden for management. Eventually, Amorepacific recorded deficits for three consecutive years since 1993. If Samsung's New Management Initiative was an intentional shock, Amorepacific's crisis was an actual crisis.

 The relief pitcher was the current Chairman&CEO Suh Kyungbae, who was then preparing for management succession. He had built his career in the field and had already proven his capabilities through his hit product, 'Ketotop'. First, he sold off non-relevant businesses (women's underwear, securities, sports team) to put out the most urgent fires. If he were a few months late, Amorepacific would have faced a direct hit during the Asian financial crisis. In his CEO inaugural address in March 1997, Chairman Suh used the expression, 'new life sprouting from parched land,' showing his desperation and his commitment towards recovery.

 Since then, change accelerated for some 20 years and Amorepacific broke its own records like a flywheel that turns at a high speed without much force once it gains momentum. Its achievements included developing technologies, creating high-quality brands, launching hit products (Retinol, First Care Activating Serum EX, Air Cushion, and many more), entering the Chinese market, gaining efficiency in logistics, realigning its distribution network, and bringing innovation to HR and business. Positive responses from customers and investors added onto the pride of its members.

 Amorepacific's change happened gently and over time. Chairman Suh continues to send messages of change to members at the beginning of every month since his appointment as CEO. Assuming these messages are sent 10 times a year, he has been advocating for change for more than 200 times. It is a management style of the story The North Wind and the Sun in Aesop's Fables, where the Sun makes the traveler remove his cloak. This is a contrast to Samsung Chairman Lee's charisma creating a spark of change in a short period of time.

 I returned to Samsung Economic Research Institute a few months after the New Management Declaration. I had the chance to deliver a special lecture on globalization at an Executives Workshop at Amorepacific in April 1995. It was held in Naksan, Gangwon-do, Korea. I saw the 'Pacific' through the windows of the lecture hall. I delivered a lecture about the basics of change as a researcher. The participants would have felt feelings of determination, looking over at the rough seas. Because Samsung Economic Research Institute was located in the International Building (the current LS Yongsan Tower), it observed the changes and successes of Amorepacific from close by.

 The recent performance of Amorepacific is stagnant. This is the reason why it must strive for change. Samsung Electronics sales was around KRW 8 trillion around the time of the New Management Initiative – larger than Amorepacific's current sales. Its last year sales recorded KRW 240 trillion with various product items ranking No. 1 in the world. Amorepacific is still quite far behind major advanced companies (especially its brand). The current challenges it faces is due to loosening up having experienced continued success. It is too late to change after being hit by a crisis. It is now time for an 'intentional shock' like Samsung's New Management Initiative.

 Change can be fun or excruciating. If the change is too plain, it is no fun; if you are overwhelmed by change, it can be excruciating. It is only truly fun when you work hard to overcome challenges and accomplish good results. No pain, no gain (苦盡甘來). In other words, after hard and painful work comes a promise of joy. Here, the Chinese character 盡 (pronounced as jin) means being devoted and dedicated. Change is an alchemy of inuring pain and converting it into joy. It is a process of taking pain and hard work as ingredients in making achievements together.

 It is only fun if you change yourself. It's easy for employees at a company to 'pretend'. Pretending to go to work, pretending to participate in meetings, pretending to change, and pretending to not do something when ordered. Some pretend and then criticize others who pretend. Changing cannot come from pretending; it must be a true change of the mind and body. The mind can wear several masks and only you know the truth. A force of habit can only be broken by yourself. Leaders must encourage members with sincerity. They must be at the head of a crisis and take the lead for members to follow.

 It is only fun if you change together. There is a thing called Parkinson's law. It applies to the growth of bureaucracies over time – an organization neglecting its purpose while prioritizing its existence. It is easy to increase unnecessary work and resources. It is easy for members to establish their own little groups and for teams to work in silos. A company must be sensitive to external changes while encouraging and motivating its members. If you shake a tin can, the stones inside will move and hit each other. When the number of members who enjoy change exceeds a critical threshold, change progresses naturally. The climax of Eight in rowing is the 'swing'. It happens when all eight rowers are rowing in perfect unison. The rowers become part of the boat, and the boat races forward elegantly like a living organism. All members must row in complete and perfect unison for the boat to move in one direction and with passion.

 It is only fun if you achieve results. Any change without specific results is excruciating and useless. Poor performance comes from slow change. Long-term slump comes from not being aligned to the changes in customers and the world. Change is the engine that drives growth and profits. That engine must run consistently; it must be regularly repaired and sometimes replaced with a new model. Moreover, the results of change must be something grand, far beyond money. There have been only a very few companies that reached greatness through change. Amorepacific now stands at a crossroad between becoming an ordinary company and leaping into becoming a great company. This requires each and every member to awaken the mind and overhaul the body to enjoy and accept change. Only then will the company's culture (the mind) and structure (the body) naturally ride the whirlwind of change. The new spring is really the perfect season for members to rise and move.